New guidelines for apartment registration
Posted on: 14/Dec/2013 12:56:30 PM
From 1st October, the Tamil Nadu government, following States such as Karnataka, has made it mandatory to register construction agreement along with the sale deed of UDS. The registrants now have to pay an additional 2 percent of the construction cost for this purpose. The construction cost includes the cost towards building the apartment, the price of parking, clubhouse fees, and charges towards electricity board, and water and sewage connection.
The Registration Department has spelt out detailed procedures and instructed all Sub-Registrar offices (SRO) to follow them. According to the new guidelines, registration of the UDS would not be entertained if the registrant does not submit the construction agreement. In the event the registrant claims that he or she is registering the UDS, but would not undertake any construction, the registering officer would inspect the property before registration.
Details of construction agreement and the date of first payment to the builder would have to be included in the UDS sale deed. When the registrant submits both the agreements — construction and the UDS — together, the SRO would register the construction agreement first and enter the details in the UDS sale deed.
The new rule would not be applicable to construction agreements executed prior to October 1. When a registrant claims that his or her flat was executed prior to the cutoff date, the registering officer can insist on verifying the details such as the date of first payment to the builder.
